Research On The Influencing Factors Of RMB Settlement Of Cross-border Trade From The Perspective Of RMB Internationalization

The international financial crisis that broke out in 2008 exposed many flaws in the dollar-based international currency system,and the international demand for currency system reform was also increasing.China has the largest foreign exchange reserves in the world.With the increase of China's overall national strength,the international status of the RMB has also risen significantly.The issue of internationalization of the RMB has also increasingly attracted the attention of the majority of scholars.From the perspective of the internationalization of currencies such as the US dollar,pound sterling,yen,and euro,the long and tortuous process must be experienced for the internationalization of all currencies.The RMB must become an international currency and cannot escape this fate.The RMB also needs to go from the settlement currency to the investment currency,from the investment currency to the reserve currency,and eventually become the international currency.This is the only way for the internationalization of the RMB.In order to open up the foreign market and promote the internationalization of the RMB,China piloted cross-border trade RMB settlement in five cities,including Shanghai and four cities in Guangdong,and expanded rapidly throughout the country.On October 1,2016,the RMB was formally included in the SDR currency basket,but the RMB exchange rate was in a downward trend.Although the central bank repeatedly stated that the RMB's currency value will remain stable,it still creates some unpleasant expectations.What is the trend of RMB exchange rate development? How to promote the internationalization of the RMB?Cross-border trade RMB settlement reduces the foreign exchange risk in trade settlement to a certain extent,accelerates China's trade with neighboring countries,promotes the sustained and steady growth of foreign trade,and has great significance in improving trade in China and other non-US dollars.So the research value is very high.After expounding relevant literature and theories,this article analyzes the impact of cross-border trade RMB settlement on the internationalization of the RMB,then analyzes the status and challenges of cross-border trade RMB settlement,and conducts the theory after establishing several important influencing factors.Analyze and empirically analyze the results of the analysis.Finally,according to the analysis results,effective policy recommendations are proposed to promote cross-border RMB trade settlement.